This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.

Dunedin Enterprise (DNE) to Wind Up

Back in August 2015, I commented on the high discount at which Dunedin Enterprise Investment Trust traded – about 38% at that time. I subsequently wrote to the Chairman suggesting some action be taken. Well they have finally decided to do something about it. Namely after the disposal of one of their large investments they plan to wind up the company (subject to shareholder approval of course).

This has caused the discount to narrow to 35% at the time of writing (according to the AIC). Is that a bargain? Perhaps but bear in mind that because this is a private equity investment trust with commitments to funds, the wind up could take a long time and the valuation of private equity investments can be uncertain.

But at least some decisive action is being taken bearing in mind that the performance of this trust has been disappointing for a number of years, particularly in terms of share price as investors lost confidence in the management. But investors need to examine whether the fund managers will be rewarded in any special way as they were when previous downsizing linked to tender offers was implemented.

Roger Lawson

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

join ShareSoc

Get more stuff

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

Other Blog Posts